Why offering subject to sale isn't the waste of time it used to be
Purchasing a property can be a tricky process, especially when you're trying to sell your current home at the same time. You may already have your home on the market, or you may be working towards getting your home market-ready.
Bridging finance these days is pretty difficult to obtain, and you’d be quite brave to purchase a home with a long settlement before selling when the market is cooling.
Introducing the “subject to sale” offer
This type of offer means that your offer to purchase your next property is dependent on the sale of your current home. For the past couple of years, you’d have been laughed out of the open home if you attempted to buy subject to sale. But now that the pendulum of the market has swung toward the buyer, they’re making a comeback.
Communication is key
When making a subject to sale offer, it's important to be upfront and communicate with the seller about your timeline for selling your current property and what happens if the sale falls through. It's also a good idea to have a plan B in case things don't go as expected. For example, if your current home doesn't sell within your projected timeline, it may be an option to retain your current home and rent it out.
It’s all in the preparation
Having your home ready to be marketed is also crucial when making a subject to sale offer. This means that your home should be in good condition, staged and ready for viewings. Having your home already on the market and actively being shown to potential buyers can give your offer a stronger appeal to the seller. This shows that you have taken the necessary steps to ensure a smooth transaction for both parties.
Keep both feet on the ground
It's also important to have a realistic timeline for selling your current property. Being able to provide a clear and realistic timeline to the seller can help to ease any concerns they may have about your offer. In addition, it is essential to work with a real estate agent who has marketing expertise and can give you an unvarnished opinion on value. This is so that you can establish what you’ll need to achieve in order to get from A to B.
Increase your chances of success
Another tip to increase the likelihood of your offer being accepted is to offer your listing to the agent who is marketing the one you're purchasing. This can provide an incentive for the agent to present your offer in a better light and increase the chances of your offer being accepted. By listing your property with the same agent, they will have a vested interest in ensuring that both transactions go smoothly. There are a lot of parties involved in a property transaction - from mortgage advisors, to solicitors, to real estate agents. Engaging the same agent reduces the chain of communication and they can be a helpful intermediary between you and the seller.
Buying subject to sale is a bit like riding a rollercoaster
It's important to remember that buying a property that's already for sale can be a bit of a rollercoaster ride, with twists and turns you might not expect. But with a little preparation and the help of a good agent, you'll be able to navigate the twists and turns and find your dream home.
In summary
By being prepared, communicating effectively, having a realistic timeline, having a backup plan and working with a skilled agent, you'll increase your chances of closing the deal on your dream home. Additionally, providing an incentive to the agent by offering your property listing to them can increase the likelihood of the agent presenting your offer in a better light and increase your chances of acceptance. With a little bit of effort and the right mindset, you'll be able to navigate the process and come out on top.
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